Macroeconomics Midterm 2 Chapter 15
minimum wage creates unemployment in markets where they create a
surplus of labor. Unemployment of this type is called structural
the labor force participation rate measures the percentage of the
total adult population that is in the labor force
if all workers and all jobs were the same such that all workers were equally well suited for all jobs, then there would be no
frictional unemployment
workers search for jobs that best suit them is most closely associated with
frictional unemployment
suppose some country had an adult population of about 50 million a labor force participation rate of 60% and an unemployment rate of 5% how many people were unemployed
1.5 million
how many people were employed in Baltivia in 2009
11000
what is the adult population of Meditor
240 million
How many in the sample are unemployed
3
the labor force population rate of Aridia in 2011 was
63.3%
If the government imposes a min wage of $4, then unemployment will increase by
0
measuring unemployment is the job of the
BLS
Four employers have justified their actions as follows. Whose logic is not consistent with the logic of efficiency wage theory?
Kay pays her workers less than the equilibrium wage so they won't have the time or money to look for work somewhere else.
Matt is waiting to be recalled to a job from which he was laid off. David was fired but hasn't looked for work during the last two months. Who does the BLS count as unemployed?
Matt but not David
Who is not included in the labor force by the BLS
Michael , who has retired and is not looking for work
Just after world war 2 the labor force participation rate of men was
about 87% and in 2009 it was about 72%
according to 2009 data on the US population which of the following was correct
adults had higher labor force participation rates and lower rates of unemployment compared to teens
Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate
and the labor force participation rate are both unaffected
the natural unemployment rate includes
both frictional and structural unemployment
Suppose that efficiency wages become more common in the economy . Imposing efficiency wages
decreases the quantity demanded and increases the quantity supplied of labor
Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as
employed and in the labor force
The Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to
frictional unemployment created by sectoral shifts
People who are unemployed because of job search are best classified as
frictionally unemployed
Efficiency wage theory suggests that paying
high wages might be profitable because they raise the efficiency of a firms workers
Suppose that computer factory workers and cell phone factory workers have no unions. Now suppose that cell phone factory workers form unions. What does this do the labor supply of and wages of workers in computer factories?
it increases the labor supply and decreases the wages of computer factory workers
Which of the following causes unemployment if not associated with a wage rate above the market equilibrium level
job search
which of the following does not create unemployment by keeping wages above equilibrium point
job search
which of the following is an explanation of the existence of frictional unemployment
job search
the BLS produces data on unemployment
monthly
June 2009 the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population?
none of the above
in the 1990s Ireland made unemployment benefits less generous. This change would likely have
reduced frictional unemployment and the natural rate of unemployment
